This document provides an overview of key concepts in services marketing. It begins with defining services marketing and outlining its characteristics. It then discusses the evaluation and growth of the service sector. Key topics covered include the nature and classification of services, challenges in services marketing, assessing market potential, and the marketing mix. The document also examines segments like service design, delivery, pricing, promotion, and strategies for different industries like healthcare, hospitality, and tourism.

1. SERVICES
MARKETING

2. UNIT 1
INTRODUCTION

3. TABLE OF CONTENT
 Introduction
 Definition
 Characteristics
 Evaluation and growth of service sector
 Natute and scope of service sector
 Classification of services
 Challenges and issues in services marketing

5. INTRODUCTION FOR SERVICE
MARKETING
 Service is an act or performance offered by one party to
another that essentially intangible and does not normally
result in ownership of anything. Its product may or may
not be tied the physical product.

6. DEFINITION
 The American Marketing Association defines services
marketing as an organizational function and a set of
processes for identifying or creating, communicating,
and delivering value to customers and for managing
customer relationship in a way that benefit the
organization and stake-holders.

7. CHARACTERISTICS
 6 Characteristics of services marketing:
 Perishability.
 Changing Demand.
 Intangibility.
 Inseparability.
 Heterogeneity.
 Pricing of Services.

9. EVALUATION OF SERVICE SECTOR
 The service sector, also known as the tertiary sector, is the
third tier in the three-sector economy. Instead of product
production, this sector produces services maintenance and
repairs, training, or consulting.
 Examples of service sector jobs include housekeeping,
tours, nursing, and teaching.

10. GROWTH OF SERVICE SECTOR
 The services sector is a key driver of India’s economic
growth. The sector contributed 55.39% to India’s Gross
Value Added at current price in FY20#. GVA at basic
prices at current prices in the second quarter of 2020-21
is estimated at Rs. 42.80 lakh crore (US$ 580.80 billion),
against Rs.

11. NATURE OF SERVICE SECTOR
 Intangibility.
 Inconsistency.
 Inseparability.
 Storage.

13. INTANGIBILITY
 A service is not a physical product that you can
touch or see. A service can be experienced by the
buyer or the receiver. Also, you can not judge the
quality of the service before consumption.

14. INCONSISTENCY
 There can be no perfect standardization of
services. Even if the service provider remains
the same, the quality of the service may
differ from time to time.

15. INSEPARABILITY
 One unique characteristic of services is that
the service and the service provider cannot
be separated. Unlike with goods/products
the manufacturing and the consumption of
services cannot be separated by storage.

16. STORAGE
 The production and consumption of services are
not inseparable because storage of services is not
possible. Being an intangible transaction there can
never be an inventory of services.

17. SCOPE OF SERVICES
 A scope of services sets out precisely what
services a consultant will be performing on a
project. Scopes of services may also be prepared
for contractors where they are carrying out
design work, or for consultants appointed by
contractors on design and build projects.

18. CLASIFICATION OF SERVICES
 Classification of Service Marketing – 2 Major
Classification:
 Consumer Service Marketing
 Industrial Service Marketing.

20. THE CHALLENGES OF SERVICE MARKETING
 1. ININTANGIBILITY
 2. LACK OF OWNERSHIP
 3. PERISHABILITY
 4. HETEROGENEITY
 5. INTERACTIVITY

21. ISSUES IN SERVICE MARKETING
 Shifting customer priorities and expectations
 Contact through multiple channels
 Surprising demographics
 Greater importance placed on customer service
 Move towards frequent testing

22. UNIT- II
SERVICE MARKETING
OPPORTUNITIES

23. ASSESSING MARKET SERVICE POTENTIAL
 A market opportunity assessment is the
process of synthesising market research and
client data to identify opportunities for
growth in a specific market or business area
and formulate an actionable strategy to
realise this growth.

24. ELEMENTS TO DETERMINE MARKET
POTENTIAL
 Market Size.
 Market growth rate.
 Profitability.
 Competition.
 Product and consumer type.

26. MARKETING MIX
 DEFINITION:
. A marketing mix includes multiple areas of focus as
part of a comprehensive marketing plan. The term often
refers to a common classification that began as the four Ps:
product, price, placement, and promotion.
Effective marketing touches on a broad range of
areas as opposed to fixating on one message.

27. The 7 Ps of Marketing
 Product
 Prices
 Promotion
 Packaging
 Place
 Positioning
 People

28. SERVICE MARKETING ENVIRONMENT
 The service marketing environment refers to all
internal and external factors, which directly or
indirectly influence the organization’s decisions
related to marketing activities. Internal factors are
within the control of an organization; whereas,
external factors do not fall within its control.

30. SERVICE MARKETING TRENDS
 10 Trends identified in the Service Sector in 21st Century
 Personalization
 Understanding of Customer Expectation
 Credibility
 Simplification
 Internationalization

31.  Bundling
 Rationing
 Virtual experience
 Market spaces
 Multi-dimensional competition

32. SERVICE MARKETING SEGMENTATION
 Market segmentation is the process
of dividing an entire market up into
different customer segments.
Targeting or target marketing then
entails deciding which potential
customer segments the company will
focus on.

33. TYPES OF MARKET SEGMENTATION
 Demographic Segmentation
 Behavioral Segmentation
 Geographic Segmentation
 Psychographic Segmentation

34. SERVICE MARKETING TARGETING AND
POSITIONING
 What Is the STP Marketing Model?
The STP Marketing Model can help you to analyze
your product offering and the way you communicate its benefits
and value to specific groups.
 STP stands for:
Segment your market.
Target your best customers.
Position your offering.

35. CONSUMER EVALUATION OF SERVICES
 Companies that conduct customer service evaluations are
looking for honest feedback about the levels of service their
employees provide to consumers.
 Evaluations – either Web-based, snail mail, focus groups, by
phone or in person – help a business see how the company
operates from different perspectives.

36. ROLE OF CULTURE IN SERVICE
MARKETING
 Culture has a huge effect on consumer behaviours. It is what
determines why certain products sell well amongst certain ages,
nationalities and businesses but not in others. It's what actually
moulds target audiences. At a global scale, what sells well in the
Western world, may not in the Middle East.

37. CUSTOMER EXPECTATIONS OF SERVICE
 Customer expectations are what customers predict will happen if
they use a product or service. Before they decide to make a
purchase, customers gather and interpret information about the
product, which influences how they view the product and its
quality.

38. SERVICE QUALITY
 Service quality is a measure of how an
organization delivers its services
compared to the expectations of its
customers. Customers purchase
services as a response to specific
needs.

39. SERVICE ENCOUNTERS
 A service encounter is defined as a
moment when a customer interacts
with a service or product for the first
time. It is the customer's actual
interaction with a service company. It
is identified as a key component of the
current agenda for service marketers.

40. RELATIONSHIP MARKETING
 Relationship Marketing is a strategy of
Customer Relationship Management
(CRM) that emphasizes customer
retention, satisfaction, and lifetime
customer value. Its purpose is to market to
current customers versus new customer
acquisition through sales and advertising.

42. CUSTOMER LIFETIME VALUE
 Customer lifetime value (CLV) is a measure of the average
customer’s revenue generated over their entire relationship with a
company. Comparing CLV to customer acquisition cost is a quick
method of estimating a customer’s profitability and the business’s
potential for long-term growth.

43. CUSTOMER PROFITABILITY
 Customer profitability (CP) is the
profit the firm makes from serving
a customer or customer group over
a specified period of time,
specifically the difference between
the revenues earned from and the
costs associated with the customer
relationship in a specified period.

44. SERVICE RECOVERY
 Service recovery is a company's
resolution of a problem from a
dissatisfied customer, converting
them into a loyal customer. It is
the action a service provider takes
in response to service failure.

45. SERVICE FAILURE
 A service failure, simply defined, is service
performance that fails to meet a customer’s
expectations. Typically, when a service failure
occurs, a customer will expect to be
compensated for the inconvenience in the
form of any combination of refunds, credits,
discounts, or apologies.

46. UNIT 3
SERVICE DESIGN AND
DEVELOPMENT

47. SERVICE LIFE CYCLE
 Service lifecycle is an approach to IT Service Management
that places an emphasis on how important coordination and
control is, across the various functions, processes, and
systems that are necessary to manage the complete
lifecycle of IT services.

49. NEW SERVICE DEVELOPMENT
 Service development is the end-to-end process of developing
and launching a new service to be sold to customers. This
typically includes market research, service strategy, customer
experience, marketing, operations and launch of a new service.

50. SERVICE BLUE PRINT
 DEFINITION
A service blueprint is a diagram that visualizes the
relationships between different service components —
people, props (physical or digital evidence), and processes —
that are directly tied to touchpoints in a specific customer
journey. Think of service blueprints as a part two to customer
journey maps.

51. Why is service blueprinting important?
A service blueprint gives a complete picture of how the
service and related experience is delivered, end to end, front
to back and across channels. It is a powerful tool that
simultaneously provides a high-level view of the user
experience and a detailed view of what is going on below the
surface.

52. GAPs model of service quality
 The GAP Model of Service quality helps to identify the gaps
between the perceived service and the expected service. Five
Gaps occur in the Service Delivery Process Like The gap
between Customer Expectation and Management Perception,
Service Quality Specification and Management Perception and
many more.

54. MEASURING SERVICE QUALITY
 Service quality measurement is the significant managerial
tool to understand consumers’ needs and wants by
analyzing the experience of consumers in the service
provided. It can help firms to find their weaknesses and
advantages to make a better service for consumers.

56. 9 Practical Methods for Measuring
Service Quality
 SERVQUAL
 Post-service ratings
 Follow-up surveys
 In-app surveys
 Mystery shopping
 Documentation analysis
 Customer effort score (CES)
 First contact resolution ratio
 Metrics analysis

57. SERVQUAL
 SERVQUAL is a multi-dimensional research
instrument designed to capture consumer expectations
and perceptions of a service along five dimensions that
are believed to represent service quality.

59. SERVICE QUALITY FUNCTION
DEVELOPMENT
 QFD is a systematic method to help identify customers’
needs for designing a product (or service) in a way that it
considers the customers’ needs first time .
 The QFD approach uses a matrix format that looks like a
house and, hence, it is also known as the “House of
Quality” (HoQ).

62. PHYSICAL EVIDENCE
 Physical evidence refers to everything your customers see
when interacting with your business. This includes: the
physical environment where you provide the product or
service. The layout or interior design. Your packaging.

63. PHYSICAL EVIDENCE

64. EFFECT OF PRICING
The impact that a change in value has on the
consumer demand for a product or service in
the market. The price effect can also refer to
the impact that an event has on something’s
price.

66. APPROACHES AND STRATEGIES
 Approaches
Approach deal with general philosophies of
teaching. Methods deal with more practical nuts and bolts.
 Strategies
Strategies deal with specific actions.

67. UNIT 4
SERVICE DELIVERY, PRICING
AND PROMOTION

68. Positioning of service
 Positioning is defined as the process of establishing
and maintaining a distinctive place in the market for an
organisation and/or its products/services offerings. This
is the creating of a distinct place in the minds of a
customer, or the perception of a customer w.r.t. other
companies or their products/services.

70. Designing service delivery system
 Congruency between target market, service concept,
and service delivery system design is often emphasised
as a means to successfully deploy business strategy and
attain levels of performance in customer satisfaction,
retention, and overall profitability.

72. Service channel
 Service channels aid companies in carrying out business
transactions. The term supply chain is used to describe the
long channel stretching from acquiring raw materials to
delivering finished products to customers. The supply
chain channel includes elements of other marketing
channels.

74. Pricing of services
 Definition:
The Pricing Methods are the ways in which the price of
goods and services can be calculated by considering all the
factors such as the product/service, competition, target audience,
product's life cycle, firm's vision of expansion, etc. influencing
the pricing strategy as a whole.

76. Pricing of service methods
 Cost plus pricing.
 Mark-up pricing.
 Break-even pricing.
 Target return pricig.
 Early cash recovery pricing.

77. Service Marketing triangle
 A service marketing triangle is a marketing framework
that includes three key types of marketing that help your
audience understand what makes your business unique
and useful for their needs. These are internal marketing,
external marketing and interactive marketing.

79. Integrated service marketing
 Integrated marketing communication refers to
integrating all the methods of brand promotion to
promote a particular product or service among target
customers. In integrated marketing communication, all
aspects of marketing communication work together for
increased sales and maximum cost effectiveness.

81. Service culture
 “We define service culture as] a shared purpose where
everyone is focused on creating value for others inside and
outside the organization.”
 Our shorthand definition of service culture is “where
employees are obsessed with customer service.”

83. Communication
 Marketing Communication can be defined as the methodologies
and tactics adopted by the companies to convey the messages in
a unique and creative manner to their existing and prospective
customers about their offerings of products and services.

85. Delivery service through intermediaries
 The service principal is the originator and the service
deliverer is the intermediary. The service principal is the
entity which creates the service concept. The service
deliverer is the entity which deals with the customers
during the execution of the service

86. E_ channel
 Electronic Channel means any telecommunication or electronic
transmission method which may be used in connection with a
Money Market Deposit or service, including any computer,
email, facsimile, internet, network, SWIFT or the SWIFT
network, wire transfer system.

87. Franchising
 A franchise (or franchising) is a method of distributing
products or services involving a franchisor, who establishes
the brand’s trademark or trade name and a business system,
and a franchisee, who pays a royalty and often an initial fee
for the right to do business under the franchisor’s name and
system.

88. Managing demand and capacity
 Demand management is an attempt to shift demand, while
capacity management is a response to demand. This is a
large area of study, encompassing a number of topics within
operations and marketing.
 Both long and short‐term decisions are required to fully
manage demand and capacity.

89. Yield management
 Yield management systems attempt to use historical data
and specialized algorithms to determine the optimal price
to sell the inventory. These systems can work in real-
time and change prices based on demand.

91. UNIT 5
SERVICE STRATEGIES

92. Health care
 Strategic planning in healthcare organizations involves
creating objectives and setting goals for where the
organization sees itself in the long-term. With these goals and
objectives in mind, you can create a plan to achieve them

94. Hospitality
 A guestologist seeks to understand and plan for the
expectations of an organization’s targeted customers
before they ever enter the service setting, so that
everything is ready for each guest to have a successful
and enjoyable experience.

96. Tourism
 A tourism marketing strategy is a structured document that
outlines your current position in the marketplace, what you
hope to achieve going forward, and how you’re going to
make that happen. In other words, it provides a framework,
so you’re not floundering around, wondering what to do next

98. Financial logistics
 Logistics refers to the overall process of managing how
resources are acquired, stored, and transported to their
final destination. Logistics management involves
identifying prospective distributors and suppliers and
determining their effectiveness and accessibility.

100. Education consultancy
 An Educational Consultant (EC) is a consultant who helps
parents/students and organizations with educational planning.
 An EC offers similar services to school counselors, but is
normally self-employed or employed by consulting firms,
while school counselors are employed by schools.

102. Entertainment utility information
technique service
 Entertainment service management is the system for
coordinating field service operations. It includes
scheduling work orders, dispatching service technicians,
tracking labor hours and job statuses and invoicing the
completed job.

103. Public utility information technique
service
 Public utilities are services provided by the
government or state, such as the supply of
electricity and gas, or the train network. Water
supplies and other public utilities were badly
affected.

104. Closing customer gaps

 Listen to your customers.
 Find out what your agents know.
 Experience the customer journey firsthand
 Implement changes in your business that will narrow
the gap
 Understand that it’s an ongoing process.

106. Strategies to match promises

 Focus on the tangibles.
 Use brand icons to make the service tangible.
 Use association, physical representation, documentation and
visualization.
 Feature service employees in communication.
 Feature satisfied customers in the communication.

107. Integrated service
 computer networking, integrated services or IntServ is
an architecture that specifies the elements to guarantee
quality of service (QoS) on networks. IntServ can for
example be used to allow video and sound to reach the
receiver without interruption.

109. Marketing communications
 Marketing communications strategy is the strategy used by a
company or individual to reach their target market through various
types of communication. It includes your message the medium and
the target.